5. EDSR 11-08-2010 - Laserfiche WebLink

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Consider EDA Micro Loan Application -Promo Products, LLC November 4, 2010 EDA Finance Committee Meeting Page 2 of 2 With permission from the owners, a copy of the company's Micro Loan application and business plan has been provided to the Small Business Development Center (SBDC) for review and comment. A representative from Promo Products LLC will be present at the Finance Committee meeting to discuss the project in further detail. In addition to the financial criteria that must be considered, the Finance Committee must also consider to what degree the applicant satisfies the criteria set forth in the Micro Loan Fund policies outlined below: Micro Loan Criteria • Max. Loan Amount: $100,000 • Interest Rate: fixed, 2 pts below prime or 3% floor • Equity: 10% of project • Private Financing: 50% of project • 1 job created per $20,000 loaned • Minimum wage of $10 per hour Promo Products, LLC Application • Amount Requested: $24,000 • Interest Rate: fixed, 3% • Equity Proposed: 5% of project o (Applicant proposes to utilize Micro Loan to supplement 10% equity required for SBA financing). • Private Financing: 90% of project • 1 job to be created per $12,000 loaned (2 new jobs total) • Proposed wage of $11 per hour Requested Action The EDA Finance Committee is asked to provide a recommendation to the EDA for action on of the Micro Loan Application with the following terms and conditions: Participation Loan: Loan Amount: Interest Rate: Term: Security: Attachments First National Bank of Elk River $24,000 fixed, 3% 20-year amortization; 5-year balloon 3rd position lien on real estate • Micro Loan Fund Policy & Guidelines • Promo Products, LLC Micro Loan Fund Application and related attachments N:\Departments\Community Development\Economic Development\Micro Loan Fund\LOANS\Promo Products\11.4.10 Finance Comm.doc